Airbnb Calculator | Estimate Short-Term Rental Profit, ROI & Cash Flow | Lofty
About Lofty
Lofty is a fractional U.S. real estate investing platform where visitors can browse property shares, learn about rental property investing, review calculators and guides, and access support for marketplace orders and account activity.
Airbnb Calculator
Model a short-term rental using ADR, occupancy, platform fees, cleaning, management, and financing. See cash flow, RevPAN, expense ratio, and break-even occupancy.
Your numbers
Expenses
Monthly operating expenses: Taxes, insurance, utilities, repairs, supplies, HOA, and reserves.
Monthly cleaning cost: Platform fees% Airbnb / VRBO marketplace fees. Management fees%
Financing
Down payment%= $73,750 cash Interest rate% Loan term yrs
What is an airbnb calculator?
An Airbnb calculator estimates a short-term rental's revenue, expenses, and profit using average daily rate (ADR), occupancy, platform and management fees, cleaning costs, and financing. It helps investors compare short-term and long-term rental returns before buying.
What your scenario is telling you
Strong STR cash flow
Projected monthly cash flow of $941 can absorb seasonal dips.
Strong vacancy buffer
Break-even occupancy of 48% leaves a healthy gap below your expected 65%.
Lean expense ratio
Expenses are only 43% of revenue. That leaves more room for slow months or surprise repairs.
Strong cash-on-cash
Cash-on-cash return of 11.6% is above the 10% bar most STR investors look for.
Cash flow, equity, and ROI over time
| Year | Gross income | Op. expenses | NOI | Cash flow | Property value | Loan balance | Equity | Cum. ROI |
|---|---|---|---|---|---|---|---|---|
| 1 | $51,009 | $22,051 | $28,957 | $11,294 | $303,850 | $219,003 | $84,847 | -20.1% |
| 2 | $52,029 | $22,636 | $29,393 | $11,729 | $312,966 | $216,593 | $96,373 | 3.1% |
| 3 | $53,070 | $23,237 | $29,832 | $12,168 | $322,354 | $214,008 | $108,346 | 27.3% |
| 4 | $54,131 | $23,855 | $30,276 | $12,612 | $332,025 | $211,237 | $120,788 | 52.4% |
| 5 | $55,214 | $24,489 | $30,724 | $13,060 | $341,986 | $208,266 | $133,720 | 78.4% |
| 6 | $56,318 | $25,141 | $31,177 | $13,513 | $352,245 | $205,080 | $147,165 | 105.4% |
| 7 | $57,444 | $25,811 | $31,633 | $13,969 | $362,813 | $201,664 | $161,149 | 133.4% |
| 8 | $58,593 | $26,499 | $32,094 | $14,430 | $373,697 | $198,000 | $175,697 | 162.5% |
| 9 | $59,765 | $27,206 | $32,559 | $14,895 | $384,908 | $194,072 | $190,836 | 192.6% |
| 10 | $60,960 | $27,933 | $33,027 | $15,364 | $396,455 | $189,860 | $206,595 | 223.8% |
| 11 | $62,179 | $28,679 | $33,500 | $15,836 | $408,349 | $185,343 | $223,006 | 256.1% |
| 12 | $63,423 | $29,446 | $33,977 | $16,313 | $420,599 | $180,500 | $240,099 | 289.6% |
| 13 | $64,691 | $30,235 | $34,457 | $16,793 | $433,217 | $175,307 | $257,911 | 324.3% |
| 14 | $65,985 | $31,045 | $34,941 | $17,277 | $446,214 | $169,738 | $276,476 | 360.2% |
| 15 | $67,305 | $31,877 | $35,428 | $17,764 | $459,600 | $163,767 | $295,834 | 397.5% |
How investors usually read these numbers
| Metric | Often strong | Watch out | Why it matters |
|---|---|---|---|
| Occupancy | 60% to 75%+ | Below 45% | Short-term rental revenue depends on both nightly rate and booked nights. |
| Expense ratio | Below 55% of revenue | Above 70% of revenue | STRs often have higher utilities, supplies, cleaning, and management costs than long-term rentals. |
| Cash-on-cash return | 10% to 15%+ | Below 6% | Compares annual profit with down payment, closing costs, and setup budget. |
| Break-even occupancy | 15+ points below expected occupancy | Near expected occupancy | Shows how much occupancy can fall before the property stops cash flowing. |
How to run a airbnb analysis
Enter the property and setup costs: Add purchase price, closing costs, and a realistic furnishing budget for an STR (often $15,000 to $50,000).
Estimate revenue: Use comps from AirDNA, Rabbu, or local hosts. Set average daily rate, occupancy, and any cleaning fees you collect from guests.
Add operating expenses: Include utilities, supplies, taxes, insurance, repairs, HOA, and reserves. Add cleaning costs separately if you do not pass them through.
Add platform and management fees: Marketplace fees are usually 3% for hosts and management is often 15% to 25% of revenue. Co-hosting can be lower.
Set financing terms: STR loans usually require 15% to 25% down. Use a higher rate if you plan to use a DSCR loan.
Read the snapshot and projection: Review monthly cash flow, RevPAN, expense ratio, break-even occupancy, and the year-by-year cash flow.
The math behind the result
Core formulas
- Monthly revenue = (ADR x 365 x occupancy) / 12 + cleaning fees collected per stay.
- Monthly cash flow = revenue - operating expenses - cleaning - platform fees - management fees - mortgage payment.
- RevPAN = ADR x occupancy. The core revenue-per-available-night metric STR investors track.
- Cash-on-cash return = annual cash flow / cash invested (down payment + closing + furnishing).
- Break-even occupancy = fixed annual costs and debt / (((ADR + cleaning fee per-night equivalent) x 365) x (1 - platform and management fees)).
Expert takeaways
- Most Airbnb calculators only estimate revenue. Without expenses, financing, and setup costs, a high revenue can still produce a poor cash-on-cash return.
- ADR and occupancy move together. Pricing for higher ADR can drop occupancy, and aggressive discounting can hurt RevPAN.
- Furnishing and setup costs commonly run $15,000 to $50,000. They drag on cash-on-cash return but are easy to forget.
- Local short-term rental regulations are real risk. Cities can cap permits, require primary residency, or ban STRs outright.
Key terms in plain English
- ADR Average daily rate per booked night. Average daily rate is the average nightly rate paid by guests, before fees. ADR x occupancy = RevPAN, which is the core revenue metric for short-term rentals.
- Occupancy Share of available nights booked. Occupancy is the percentage of available nights that are booked by paying guests. Most short-term rental markets average 50% to 70% occupancy across the year.
- RevPAN ADR x occupancy. Revenue per available night equals ADR multiplied by occupancy. It captures both pricing power and demand in a single number, which is why short-term rental hosts focus on it instead of ADR alone.
- Break-even occupancy Occupancy needed to cover all costs. Break-even occupancy is the share of nights you must book to cover operating costs, fees, and mortgage. The bigger the cushion between break-even and expected occupancy, the safer the deal.
- Expense ratio Costs as a percent of revenue. Expense ratio divides total operating costs by total revenue. Healthy short-term rentals usually run 45% to 60%. Above 70% is a warning sign that the property barely covers costs in a normal year.